Prague transportation company may face bankruptcy in half a year

27-09-2013

The Prague Public Transportation company (DPP) is around eight billion crowns in debt and on the verge of bankruptcy, the capital’s mayor Tomáš Hudeček said in an interview for Czech Television on Thursday evening. According to Mr. Hudeček, the main problem is a contract the company signed with Škoda Transportation in 2006 for 250 new trams to be delivered over 12 years, which is increasing the DPP’s debt by 2.3 billion crowns each year. The company says that they have encountered technical problems with all of the new 15T trams that were delivered so far, and have filed some 800 complaints with Škoda. If DPP fails to renegotiate the contract within the next six months, it will have to face major restructuring, according to the mayor.